Sabesp first half results hit by currency depreciation
- From: Vol 3, Issue 9 (September 2002)
- Category: General
- Region: Americas
- Country: Brazil
- Related Companies: Sabesp
São Paulo state water company Saneamento Básico do Estado de São Paulo (Sabesp) has announced a first half loss of R$218 million (US$70 million), a 257.6% greater loss than the company registered in the first half of 2001.
The substantial loss was due to the sharp fall in the value of the Brazilian real during the second quarter of the year. Around 42% of Sabesp’s total debt is linked to foreign currencies, most notably the US dollar. Repayment of dollar-denominated debt increased company expenditure by 150% to R$860 million (US$272 million). This ate up operational ...
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